The Interaction between Bilateral Investment Treaties and EU law

In July 2010 the Commission published a communication titled "Towards a Comprehensive European International Investment Policy" expressing its vision of a common investment policy with the ultimate goal of replacing the network of bilateral investment treaties (the "BITs") concluded between Member States and third countries by a regulation based on measures (legislation as well as international treaties) taken primarily by the European Union (the "EU"). It shall be noted that regulation of foreign investments is traditionally seen as a prerogative of sovereign states. The present work reflects current discussions over whether EU law provides for a regulation of foreign investments comparable to the regulation covered by the current BITs concluded by Member States.